Diploma says Q1 revenues up 10% year-on-year

Group revenues increased by 14% at constant exchange rates, with acquisitions completed during the last 12 months contributing 6% and underlying growth of 8%.

The general strengthening of UK sterling in the second half of 2017 against all major currencies except the euro, provided an overall headwind of 4% to reported group revenues.

In Diploma's life sciences sector, reported revenues were up 20%, with a strong contribution from Abacus dx, the Australian diagnostic business acquired in April last year.

On an underlying basis, revenues were up 10% reflecting much stronger capital sales, having secured last year a new endoscope product line and against a weak comparative, Diploma said.

Its seals sector, reported revenues increased by 6% (up 9% on an underlying basis) principally driven by strong trading activity across the North American businesses.

In international seals revenues were unchanged from last year with stronger trading in the European businesses being offset by weaker performances in Russia and Australia.

The controls sector reported revenues up 7% (up 5% on an underlying basis) against a very strong comparative last year with all businesses benefited from stronger European markets, Diploma centre.

“The group's operating margin remains in line with expectations and slightly ahead of the comparable period last year. The group has a robust balance sheet and has a proven track record of strong cash generation which the group seeks to reinvest in acquiring new businesses to accelerate growth,” Diploma said.

It added that the recent cuts to US taxes would see its rates reduce to 24% from 26.5%with no material one-off charges or credits as a result.